Theories of asymmetric information indicate that unequal knowledge of information about the company causes investors to interpret the sale of stock by a company as a “signal” that things may get worse in the future. The use of debt is perceived as a positive signal. In general, what implication does this have for capital structure policy? Does it matter if the firm is a mature company or a new venture? Would it matter if the founder plan to sell some of their share at the time of the initial public offering, to make future investment of their own capital by buying some stock, or to neither buy nor sell shares?